119-hr4572

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4572 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 4572

 To amend the Internal Revenue Code of 1986 to repeal the qualified 
contract exception to the extended low-income housing commitment rules 
 for purposes of the low-income housing credit, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 21, 2025

 Mr. Neguse introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to repeal the qualified 
contract exception to the extended low-income housing commitment rules 
 for purposes of the low-income housing credit, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Save Affordable Housing Act of 
2025''.

SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION.

    (a) Termination of Option for Certain Buildings.--

    (1) In general.--Subclause
            (II) of 

section 42

    (h)

    (6)
        (E)
            (i) of the Internal Revenue Code of 1986 is amended by inserting 
 ``in the case of a building described in clause
            (iii) ,'' before 
 ``on the last day''.

    (2) Buildings described.--Subparagraph
        (E) of 

section 42

    (h)

    (6) of such Code is amended by adding at the end the 
 following new clause:
 ``
            (iii) Buildings described.--A building 
 described in this clause is a building--
 ``
            (I) which received its allocation 
 of housing credit dollar amount before 
 January 1, 2025, or
 ``
            (II) in the case of a building 
 any portion of which is financed as 
 described in paragraph

    (4) and which 
 received before January 1, 2025, under 
 the rules of paragraphs

    (1) and

    (2) of 
 subsection
            (m) , a determination from 
 the issuer of the tax-exempt bonds or 
 the housing credit agency that the 
 building would be eligible under the 
 qualified allocation plan to receive an 
 allocation of housing credit dollar 
 amount or that the credits to be earned 
 are necessary for financial feasibility 
 of the project and its viability as a 
 qualified low-income housing project 
 throughout the credit period.''.

    (b) Rules Relating to Existing Projects.--Subparagraph
        (F) of 

section 42

    (h)

    (6) of the Internal Revenue Code of 1986 is amended by 
striking ``the nonlow-income portion'' and all that follows and 
inserting ``the nonlow-income portion and the low-income portion of the 
building for fair market value (determined by the housing credit agency 
by taking into account the rent restrictions required for the low-
income portion of the building to continue to meet the standards of 
paragraphs

    (1) and

    (2) of subsection

    (g) ). The Secretary shall 
prescribe such regulations as may be necessary or appropriate to carry 
out this paragraph.''.
            (c) Conforming Amendments.--

    (1) Paragraph

    (6) of 

section 42

    (h) of the Internal Revenue 
 Code of 1986 is amended by striking subparagraph
        (G) and by 
 redesignating subparagraphs
        (H) ,
            (I) ,
        (J) , and
        (K) as 
 subparagraphs
        (G) ,
        (H) ,
            (I) , and
        (J) , respectively.

    (2) Subclause
            (II) of 

section 42

    (h)

    (6)
        (E)
            (i) of such Code, 
 as amended by subsection

    (a) , is further amended by striking 
 ``subparagraph
            (I) '' and inserting ``subparagraph
        (H) ''.
            (d) Technical Amendment.--Subparagraph
            (I) of 

section 42

    (h)

    (6) of 
the Internal Revenue Code of 1986, as redesignated by subsection
            (c) , 
is amended by striking ``agreement'' and inserting ``commitment''.

    (e) Effective Date.--

    (1) In general.--Except as provided in paragraph

    (2) , the 
 amendments made by this section shall take effect on the date 
 of the enactment of this Act.

    (2) Rules relating to existing projects.--The amendments 
 made by subsection

    (b) shall apply to buildings with respect to 
 which a written request described in 

section 42

    (h)

    (6)
        (H) of the 
 Internal Revenue Code of 1986, as redesignated by subsection
            (c) , is submitted after the date of the enactment of this Act.
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